Human Resource Accounting Practices In Nepalese Commercial Banks(Comparative Study On Standard Chartered Bank Nepal Limited And Nabil Bank LImited)

Abstract

Human Resource Accounting is as a modern concept in the field of accounting. It is a process of identifying and measuring data about human resources. Measurement of the investment inhuman resources will help to the organization to evaluate the expenses made in human resource over a period of time. For the betterment of the organizations, it is necessary to evaluate the value/worth of human resources in a systematic manner and record the information related to them in the financial statement of the organization to communicate their value time to time to the users of the financial statement. From the information of human resource accounting, management can take the proper decision about their future decision endeavor. In this context, it is worthwhile to examine human resource accounting practices in Nepalese Commercial Bank. For the convenience of completing the thesis successfully, comparative study of two Nepalese Commercial Bank has been taken as sample bank and practices of HRA has been measured on five broad indicators which incorporates several sub indicators and HRADI has been calculated. After calculating the HRADI it has found that SCBNL discloses 69.23 percent and NBL discloses 76.92 percent which shows that the overall practice of HRA in both banks has not been yet at satisfactory level. After going through the annual report of SCBNL and NBL it has found that both bank followed the Nepal Financial Reporting Standard to prepare the financial statement where both bank maintain the human resource cost under two heading i.e. Personnel Expenses and Deferred Employee Expenditure. So, it can be said that somewhat both banks account their human resource but the real human resource accounting means valuation of human resource had not yet been done by any bank under the study. So, the present study has tried to value the human resource of both sample banks by using Lev and Schwartz Model.